Page 71 - DMGT554_RETAIL_BUYING

Retail Buying

Notes getting a share of the market that prefers to purchase at home or does so because of time
limitations. Every conceivable product line and price point is available from catalog companies.
Some feature the same full line of merchandise as is found in the department stores, while others
restrict their offerings to a narrower product base such as is found in the specialty chains.
The largest of the direct retailing general merchandise businesses is Spiegel. Featuring a wide
assortment ranging from apparel and accessories for the family to products for the home,
Spiegel sends its buyers all over the globe to seek out merchandise that will fit most families’
needs. Lands’ End, a part of Sears Holdings on the other hand, limits its assortment to clothing
and some wearable accessories for men and women, while Herrington, in its Enthusiasts’ Catalog,
sells only products with a golf, motoring, travel, fitness, photography, and audio orientation.
Although the catalog business continues to boom, some of these merchants are feeling that a
“store” presence will help them gain an even broader customer base. Some are opening stores,
on a limited basis, throughout the country to bring their merchandise to the traditional shoppers.
Their belief is that once customers have been satisfied in the store, they will then make additional
purchases through the catalogs.
Companies such as Smith & Hawken, which features merchandise for gardeners; The American
Girl, specialists in dolls; and Patagonia, direct marketers that sell specialty items for sports
enthusiasts and outdoors people, have entered into the traditional retail environments. Patagonia’s
stores are owned and operated by Great Pacific Iron Works. Thus without the challenge of
running a retail operation, the company has the advantage of having its merchandise featured in
a limited number of stores and hopefully gaining an additional customer base that will also use
the catalog for future purchasing.

Notes Unlike the Spiegel operation, Patagonia’s catalog is highly specialized, and it serves
a very different type of customer. Unlike Spiegel, it also markets its catalog merchandise
in stores that are affiliated with the company.

Self Assessment

Fill in the blanks:
1. The .................... are structured either as full-line operations or specialized stores.
2. .................... Department Store feature complete merchandise assortments that include
apparel for the family, accessories, home, etc.
3. .................... department store is a company with anywhere from two to more than a
thousand “small” units.

4. .................... department stores usually having “large” stores that feature a flagship and,
perhaps, no more than one hundred branches.
5. The largest of the direct retailing general merchandise businesses is .................... .

6. The chains rely on the catalog to provide additional .................... for their companies.
7. Notations such as “....................” indicate that the store is looking for sales outside the
normal trading area.

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